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1,298 Lacey Properties to be Auctioned Off at Annual Lien Sale

The property owner with the most in uncollected taxes is Edrich Corporation's Shark Fin Inn, owing $35,400

More than 1,200 Lacey properties will be auctioned off at the township’s annual lien sale on Friday, Jan. 25 at 9 a.m. The number of properties on the tax sale list increased 48 percent since January 2012.

As of Jan. 22, the total sale amount for all 1,298 properties is $1,481,486. This was an increase from

The township will auction off the outstanding balance on each property, Collector of the Taxing District of Lacey Township Sharon Sulecki previously said. The balance is determined by the amount in uncollected municipal taxes — property, water, and sewer.

Uncollected taxes range anywhere from just $2.97 to $35,400.

The property owner with the most in uncollected taxes is Edrich Corporation located at 701 S. Main St., where the Shark Fin Inn used to operate. The company owes $35,400.34.

Taxpayers may decide not to pay their taxes for a variety of reasons, Township Administrator and Municipal Clerk Veronica Laureigh previously said. But the shortfall is accounted for in the budget each year under the Reserve for Uncollected Taxes.

Interest accrues daily on uncollected taxes and if the number exceeds $10,000, there is a 6 percent penalty, Sulecki previously said.

Some taxpayers have an escrow account for taxes with mortgage companies. In many cases, those mortgage companies failed to pay the taxes for “some reason,” she said. There could have been a default, the home is foreclosed or there was a breach in the escrow agreement.

Once uncollected taxes are accounted for the properties are put on the lien sale.

At the auction, the potential lien holder bids on the property and pays the township, Sulecki previously said. In return, they’ll get a tax sale certificate, which guarantees that they’ll get reimbursed.

Tax sale certificates can earn interest up to 18 percent, depending on the winning percentage bid at the auction, according to the state’s Division of Local Government Services.

For those whose property is being auctioned off, Sulecki likened it to borrowing on a mortgage. The money is being lent to them until they pay it themselves or until the home is foreclosed upon.

Below is a list of the top 10 taxpayers who have failed to pay their taxes organized by owner name, property location and principal due:

  1. Edrich Corp., South Main Street, owes the most taxes for a single property at $35,400.
  2. Northeast Passage Inc., owner of 8 properties in Lacey totaling $24,713.21.
  3. Jennifer Cavalier, owns 11 properties in Lacey totaling $16,092.23.
  4. Steven Glodack, South River Drive, $14,154.43.
  5. Dolores and Thomas, Douglas Hun, Oxford Road, $13,985.59.
  6. Jack and Michelle Sandella, Oak Hill Court, $12,122.31.
  7. Brian and Deborah Deane, Laurel Boulevard, $11,729.16
  8. Herlihy, John P Inc. MPP, Orlando Drive, $10,034.90.
  9. Sheryl Schomer, Capstan Drive, $9,040.04.
  10. M. Zillante and Rafhael Zillani Trust, Sunrise Boulevard, $8,212.21 
Mary Ryan January 24, 2013 at 08:15 PM
I have to say that I find it appalling that an individual or corporate entity can own multiple properties and not figure out a way to pay their taxes. I have to get up and go out to work, pay all my taxes and with-holdings (I am not talking about people fighting to keep their homes) and people owning 8 and 11 properties cannot figure out a way to pay their taxes for the services that they are clearly utilizing (and I assume if you have up to 11 properties - your using a lot or services) to their benefit. Sell something, get a paper route! but they should figure it out. Its not fair to all of us. Its crazy that they get subsidized.
Resident of Lacey January 24, 2013 at 08:43 PM
Anyone know where the whole list posted?
Elaine Piniat (Editor) January 24, 2013 at 08:48 PM
Resident of Lacey, it's posted on the township's website. Here: http://www.laceytownship.org/content/18/3046.aspx. Click the link at the bottom of the description of the lien sale.
proud January 24, 2013 at 08:51 PM
Does anyone know how the amount allocated for unpaid taxes in the most recent budget?
Robert Yates January 24, 2013 at 09:28 PM
I am pretty sure businesses and people who own multiple properties can get into financial trouble just as easily as an individual can. Moreover, maybe Jennifer Cavalier is 86 years old and hasn't utilized the primary item that our taxes are spent on (i.e. schools) in 50 years or maybe she never used them. That would mean that all the years she did pay taxes, she was in fact subsidizing someone else, rather than the other way around as you suggest. These people are not getting bailed out. If they are not paying their taxes, they are most likely not paying their mortgages and thus will most likely lose the properties to foreclosure. In addition, people will not be bidding on these liens out of the goodness of their own hearts. They expect to turn a profit; probably when the properties are foreclosed upon. Why assume the worst in people? Also, if the unnecessary items that this town spends money on were eliminated or made optional, perhaps it would be easier for people to pay taxes in the first place.
proud January 24, 2013 at 10:07 PM
@Robert Yates, the lien holders profit whether the property is foreclosed on or not. I agree with you that the basis of property tax is certainly an inequitable one. I also agree that if unnecessary services were eliminated, the staggering number of liens being sold may very well decrease. Likewise, if the assessed value of the properties in Lacey ( and elsewhere) were a true reflection of the fair market value , the number of liens would again likely decrease. The municipal administrators are certainly aware of this. Yet, the taxpayers are saddled with the reassessment of a few years back which is a poor reflection at many levels. Adding insult to injury, I predict that our taxes will rise again. That they may rise at a higher rate then the state average (as they did last year @3.6%) certainly won't be welcome news to struggling property owners. Such much for the 2% cap. One thing I do know is that handing out raises will provide no relief.
BeachMomma January 24, 2013 at 11:32 PM
I agree with Mary Ryan, these property owners who are collecting rent on all these properties should pay their taxes.
ynot January 25, 2013 at 02:37 AM
How much does the ex-mayor owe this year ????
Commercial Banker January 25, 2013 at 02:02 PM
Hence the reason that no bank will mortgage a property without Escrowing for taxes. Also many companies choose to pay their taxes late as business is seasonal and the penalites are minimal for past due taxes. It's 200 times better to be 60+ days past due on real estate taxes than it is to be 30+ days past due on your Mortgage.
proud January 25, 2013 at 02:04 PM
Which one?
Robert Yates January 25, 2013 at 02:20 PM
@proud: "the lien holders profit whether the property is foreclosed on or not" This is interesting; how do municipal tax liens work in NJ? In NH, tax liens took priority over even the mortgage and the sheriff auctioned off the property just like a foreclosing bank would. Here it seems different. What exactly is the township auctioning? I completely agree with the other problems that you set forth. One quick suggestion. I was able to settle a property tax abatement application last year without too much fanfare. Certainly it is a bit of a headache, but pretty much all you need to do is file an application (with a fee of course) to both the town and the county and one other party I think (instructions will be included) and then provide comparison sales supporting your suggested assessment value (the sales must have occurred within the same tax year). Even if the town can technically reject your suggested assessment because it falls within the legal window, they will likely offer you a settlement anyway to avoid taking the matter before the county tax board. Apparently they have tons of these on their plates. But, this is only fruitful if they do not raise taxes, which- like you said - I am sure they will.
Resident of Lacey January 25, 2013 at 02:28 PM
Thank you Elaine
Laceygoingdownhill January 25, 2013 at 04:42 PM
If you look at the list, most if not all are for MUA bills and not for property taxes.
Jason January 25, 2013 at 07:42 PM
We also have to remember the people who are losing their homes to foreclosures and short sales already and have stopped paying taxes (as instructed to do). The banks will wind up paying the majority of these taxes, so Lacey will not go unpaid, don't worry. My uncle is on the list and he passed away last year and his house is being short saled, so before everyone makes negative comments, do your homework. Some are legitimately late (businesses, etc.) but nobody escapes the tax man, so why would we think this would be any different?
JOHNNY Done it January 26, 2013 at 03:53 AM
GEEZ,, Eastport builders is on the list a few times .The owner of that sits on our Town committee,, May be they need to change the rules for being on the council ,Quinn is not in gooding standing to hold a position on the committee ,Come clean or get kicked off!!!!
proud January 26, 2013 at 12:04 PM
@Robert Yates, if at year end a property has property tax or outstanding water and sewer charges, the property owner is notified that they must pay the outstanding balances or a lien will placed on their property. Said liens are then put up for sale at an auction at the courthouse. The amount of interest can be bid up to as high as 18%. The township and the authority are then paid the outstanding balances along with some additional charges and the property owner is then responsible to the lien holder. As long as the lien holder has a claim to said property, they must pay the current property taxes and municipal obligations, and are owed the auction rate of interest for the payments made subsequent to buying the lien. The property owner has two years ( or, possibly more) to pay all taxes, municipal utility charges, interest and other charges ( statutory). If after two years the property owner does not pay these amounts, the lien holder may proceed with foreclosure proceedings. This process takes about nine months, depending on the court. The profit made by the lien holder is the exceptionally high rate of interest they receive for paying another's responsibility. If the lien holder is successful in foreclosing and becomes the owner of the property, they have usually done so for only a fraction of the actual value of the property. The condition of the property( as is often the case on a foreclosed home) may very well be compromised, particularly if the property were abandoned.
proud January 28, 2013 at 02:21 AM
@jason, I don't think you understand how the process works. Nor do I think Femacare will benefit your sad situation.

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